√Sub-$20,000 city cars nearing extinction, says Suzuki

Suzuki has said goodbye to the sub-$20,000 drive-away city-car class, as buyers reportedly ask for more comfort, technology and safety features.

Suzuki has become the latest automotive brand to leave the sub-$20,000 new-car market segment – as technology and safety features increase the cost of Australia’s most affordable cars.

The axing of the Suzuki Baleno hatch – which is priced from $19,990 drive-away with a manual transmission – leaves only two brands with new cars priced under $20,000 drive-away: South Korea’s Kia and China’s MG.

Alongside rising material and production costs over the past two years, the shorter list of budget cars available can be attributed to longer standard feature lists, as big touchscreens, stronger crash structures, and advanced safety systems are fitted to Australia’s cheapest cars.

Whereas Suzuki pledged two years ago it would not leave the sub-$20,000 car market, the company has shifted into reverse gear – and says it is no longer possible to meet customer expectations for safety below $20,000.

“As the years have gone past, all of our specifications for our entire product line-up – minus Jimny Lite – have been increasing,” Suzuki Australia general manager Michael Pachota told Drive this month.

“The technology has improved, [as have] safety standards and other bits and pieces – all of this costs money. These are things that have been added to these cars, and as specifications go up in these cars, prices go up in these cars as well.

“So to go back to the price points of 2015 or 2016 – back then when [there was a] sub-$20,000 light car segment in the [model] range – it’s probably not realistic, in order to meet all those customers’ expectations now in terms of safety features.

“So to see a sub-$20,000 car in the light segment has probably passed,” Pachota said, referring to Japanese brands specifically – rather than Chinese or South Korean ones.

Two years ago, Pachota told Drive Suzuki Australia saw the sub-$20,000 segment “the core of our business”, and that there was “steady demand from consumers looking for a safe, reliable and economical new car in that price range.”

“We’re not going anywhere. In fact we continue to invest in our range at a time when other brands are leaving the segment,” the Suzuki Australia executive said.

In the last two years, the price of the cheapest Suzuki Swift has risen from $18,990 (GL Navigator manual) to $25,990 (GL S manual) drive-away – while the cheapest Suzuki Ignis has risen from $18,990 to $23,490 drive-away in the same time.

Standard equipment has risen on the base Swift, now including automatic LED headlights, a bigger Australia-fitted touchscreen (but no longer with satellite navigation), and proximity key entry – however high inflation and rising shipping costs have also played a major factor.

Once stock of the Suzuki Baleno GL manual ($19,990 drive-away) depletes over the coming months, Australians will be able to visit just two showrooms to buy a new car for less than $20,000 drive-away: Kia and MG.

Three of the five Kia Picanto model grades available cost less than $20,000 drive-away, as do Core and Core with Nav versions of the larger MG 3 hatchback.

Brands that have left the sub-$20,000 market over the last three years include Toyota, Mazda, Hyundai, Honda, Mitsubishi and Ford.

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